Hain Celestial intends to complete the divestiture of its the Hain Pure Protein organic and antibiotic-free poultry business within months, the company announced on May 8.
The diversified company in February revealed its intent to sell Hain Pure Protein, stating that even though the unit is a successful business, it would potentially be better suited to be part of a larger animal protein company.
Speaking during a quarterly conference call when Hain Celestial released its financial results for the third quarter of fiscal year 2018, Hain Celestial CEO Irwin Simon did not identify any specific party that was interested in purchasing the company. He did, however, reveal that there has been a “robust level of interest” among potential buyers for the poultry business, and that the divestiture is expected to be completed during the first half of fiscal year 2019. The third quarter of fiscal year 2018 concluded on March 31.
Simon said Hain Celestial is considering several options of how to utilize the proceeds from the divestiture, including stock buyback, paying down debt, a special dividend or re-investing in the company.
According to the WATTAgNet Top Poultry Companies Database, Hain Pure Protein produced an estimated 1.23 million pounds of ready-to-cook chicken on a weekly basis in 2017. The company also slaughtered an estimated 241 million pounds of live turkeys in 2017. The company’s key brands are Plainville Farms and Freebird.
Third quarter financial results
Hain Pure Protein achieved $118.2 million in net sales for the third quarter of the 2018 fiscal year. That figure was relatively flat when compared to the same period during the 2017 fiscal year. The segment also reported an operating loss of $2.1 million.
Hain Celestial in reporting its financial results for the third quarter, did not include Hain Pure Protein’s result as a part of the company’s results but instead treated Hain Pure Protein as a discontinued operation because of the intent to divest. Hain Celestial achieved a net income of $12.7 million for the quarter.
